Japan has just intervened in the currency market today, but a quick glance at history shows that intervention is rarely a one-off affair. As shown below by the yellow lines in the Morgan Stanley chart below, Japan has tended to intervene multiple times in succession.
Thus traders beware, more hits could be on the way, and it makes sense that Japan would want market participants to be constantly worried about further unannounced moves such as was made today. This could be one reason why Morgan Stanley’s Emma Lawson is bearish on the yen and has a 125-per-dollar end of year target for the currency. If she’s right, then we’re in a for huge yen crash given that even today, post-intervention, the yen sits around 85-per-dollar.